What Causes People To File Personal Bankruptcy?
One myth is that people who file bankruptcy are irresponsible. This is usually far from the truth. There are challenging life situations that literally come out of nowhere and are impossible to control. (COVID-19 is a good example of this.) Debt builds up as a result of more ordinary life situations as well, such as medical debt, job loss debt, and divorce debt. Before you know it, you are bankrupt. As debts rise, bankruptcy is a way that ordanary people can regain control of finances.
What Leads To Becoming Bankrupt?
- Medical Debt: Medical debt is the largest of life events that can lead to bankruptcy. Medical debt doesn’t take long to acquire, especially for a devastating disease such as cancer. In the news lately there has been a lot of talk about the rising cost of prescription drugs. Drugs to treat cancer are some of the most expensive out there, not to mention the therapy and other medical expenses. With or without insurance coverage, serious diseases like cancer can quickly result in hundreds of thousands of dollars in unpaid medical bills. It is most important to treat your illness. When you are ready and able to learn how bankruptcy may be able to help, one of our compassionate and experienced bankruptcy attorneys are here to help.
- Job Loss Debt: State labor reports indicate that Wisconsin, and the nation, are struggling post COVID-19. Job loss is in the top three reasons why a person files for bankruptcy. If you’ve lost your job and qualify for unemployment, the amount of money you receive may still be less than enough to get by. (Not to mention, unemployment doesn’t last forever.) Living on far less than what you had prior to the loss may make it impossible to cover bills or general living expenses. These expenses add up. Creditors start to call. Your utilities get shut off. Before you give up hope.
- Divorce Debt: Researchers have found that divorce rates peaked in 1980 and have since been on a slow decline. This may seem like great news, but not so much when we consider how financially complicated divorces have become in modern day. There are a whole bunch of factors involved with divorce, and they often add up to big financial distress. If you have gone through a divorce, you may already know how devastating it can be financially. What you may not know is how bankruptcy may help. Furthermore, you can still buy a home, you can still buy a car, and you can repair your credit score…after filing bankruptcy.
How To Overcome Financial Burden
Sure, we don’t always have control over what is going to happen. However, we do have control over how we respond and react to any situation. No matter how financially devastating, there are ways to overcome financial burden. When life leads to personal bankruptcy, don’t despair.
How you respond to financial hardship, and how you fix it is where you’ll find your power. You’re best move may be to gather information about bankruptcy to determine whether or not it may be right for you. To find out if you are a candidate for bankruptcy, reach out to Debt Advisors for a free consultation to eliminate debt.